Naira Hits Five-Month High At ₦1,338.59 Per Dollar

The naira has strengthened to a five-month high of ₦1,338.59 per dollar at the official market on Thursday. Improved dollar liquidity and rising external reserves have supported the latest gain, easing pressure on the local currency.

Market data puts the dollar at about ₦1,341.66 on Friday, although the final NFEM closing rate will depend on trading activity. The naira had traded at ₦1,343.59 per dollar on Wednesday before gaining further the following day.

However, the dollar remained more expensive in the parallel market, where it was quoted at about ₦1,400 to buy and ₦1,410 to sell on Thursday.

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This means anyone buying $1 through the parallel market would need about ₦1,410, depending on the dealer and location.

BDC operator holding Naira and Dollar notes. Credit: Bloomberg.

The difference between the indicative official rate of ₦1,341.66 and the parallel-market selling rate of ₦1,410 was about ₦68 per dollar.

The naira’s recent gains have come with stronger foreign-exchange reserves, which have reportedly risen to about $53.34 billion, an 18-year high.

The stronger naira could reduce the cost of dollar transactions for importers, travellers, students paying overseas tuition and businesses with foreign-currency obligations.

However, the actual rate available to customers may differ from the official benchmark or parallel-market quotation.

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Banks, Bureau de Change operators and other authorised dealers may offer different rates depending on the transaction, amount, location and market conditions.

Parallel-market rates remain unofficial and can change several times within a day.

The Central Bank of Nigeria (CBN) does not recognise the parallel market as an official foreign-exchange market.

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Deborah Akwa

Deborah Akwa is a content writer with over four years of experience creating brand stories, editorial content, and audience-focused articles on topics like health, lifestyle, and entertainment.

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